The cryptocurrency market ended the week on a turbulent note, with Bitcoin (BTC), Ethereum (ETH), and major altcoins posting significant losses on February 22. A wave of panic swept through digital asset markets following the revelation that Bybit, one of the world’s largest crypto exchanges, suffered a major security breach resulting in the theft of $1.4 billion worth of Ethereum. The fallout triggered over **$566 million in liquidations** across leveraged positions in just 24 hours, amplifying downward pressure on prices.
As investor sentiment turned cautious, BTC retreated from recent highs and dipped below $97,000, settling around **$96,170—a nearly 2% drop. ETH followed suit, falling close to 3% to trade near $2,674**, while major altcoins like XRP, SOL, and popular meme coins also declined between 2% and 5%. The global crypto market cap contracted by **1.98%**, now sitting at approximately **$3.17 trillion**.
This sudden volatility underscores how rapidly external shocks—especially security incidents—can ripple across decentralized financial ecosystems. With fear gripping traders and liquidations accelerating, it’s crucial to understand not only what happened but also what could come next.
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Bitcoin Retreats to $96K Amid Wave of Liquidations
Bitcoin, often seen as a market stabilizer during turbulent times, was unable to hold its ground this week. Over the past 24 hours, BTC lost nearly 2% of its value, dipping to $96,170** after briefly touching an intraday high of **$99,497. Its lowest point during the period was $94,852, reflecting heightened volatility amid growing uncertainty.
According to Coinglass data, more than $199 million in long positions were liquidated on Bitcoin futures markets alone. These forced exits typically occur when leveraged traders fail to meet margin requirements due to sharp price swings—often creating a feedback loop that accelerates declines.
Despite the pullback, Bitcoin’s market dominance remains strong at 60.29%, showing only a marginal decline. However, the incident raises questions about short-term resilience, particularly if stolen funds begin entering circulation.
Ethereum and Altcoins Under Pressure After Bybit Exploit
Ethereum bore significant brunt from the fallout. ETH price dropped nearly 3%, trading at $2,674**, with its 24-hour range spanning from **$2,616 to $2,842**. Over **$141 million in ETH positions were liquidated, second only to Bitcoin in terms of total value.
Given that the stolen assets were denominated in ETH, market participants are closely watching for signs that hackers might offload portions of their haul. Any such move could intensify selling pressure and potentially push prices lower in the coming days.
XRP and SOL Follow Downward Trend
Ripple’s XRP also slipped, losing over 3% to reach $2.57**, while Solana (SOL) declined by **2%** to **$170. Both assets experienced notable liquidation volumes—$14.95 million for XRP** and **$22.24 million for SOL—as traders exited leveraged bets amid deteriorating market conditions.
These movements highlight how interconnected digital asset markets have become; a shock in one segment can quickly cascade into others, especially during periods of high leverage usage.
Meme Coins See Broad-Based Declines
Even the usually resilient meme coin sector failed to escape the downturn:
- Dogecoin (DOGE) fell 4% to $0.2417**, with **$14.03 million in liquidations.
- Shiba Inu (SHIB) dropped 2% to $0.00001516.
- Pepe (PEPE) and Trump-themed token (TRUMP) each lost between 2% and 5%, now trading at $0.000009188** and **$16.08, respectively.
While meme coins often thrive on speculative energy, they are equally vulnerable during risk-off phases. Their performance this week mirrored broader market trends, reinforcing their status as high-beta assets within the crypto ecosystem.
Unexpected Gainers Amid the Downturn
Despite widespread red across charts, some projects defied the trend and posted impressive gains:
Ethena (ENA) — Up 11%
Ethena’s native token ENA surged 11% to $0.4544, emerging as a top gainer. The rally came after the protocol reassured users that its synthetic dollar stablecoin, USDe, remains fully backed and unaffected by the Bybit hack. Investor confidence in Ethena’s reserve transparency likely fueled the rebound.
Bitget Token (BGB) — Up 8%
BGB jumped 8% to $5.05, benefiting from increased attention toward competing centralized exchanges amid Bybit’s crisis. Bitget further boosted sentiment by launching a limited-time on-chain staking program for BGB holders.
Jito (JTO) — Up 5%
JTO rose 5% to $2.84, driven by positive news that South Korea’s Upbit exchange will list the token in its KRW trading pair. Listings on major regional platforms often drive demand from local investors.
These counter-trend moves suggest that while fear dominates overall sentiment, opportunities still exist for projects demonstrating strength, transparency, or strategic developments.
Top Losers: MNT, BERA, and S Hit Hard
Not all altcoins fared well—even outside direct exposure to the hack:
- Mantle (MNT) plunged 15% to $0.883
- Berachain (BERA) dropped 12% to $7.16
- Sonic (S) slid 10% to $0.8546
These losses may reflect profit-taking or broader deleveraging rather than project-specific issues. However, they serve as reminders that even promising Layer-1 and DeFi ecosystems can be swept up in macro-level market corrections.
Frequently Asked Questions (FAQ)
What caused the recent crypto market drop?
The primary catalyst was the $1.4 billion exploit on Bybit, which led to massive liquidations and triggered panic selling across leveraged positions. This event eroded trader confidence and contributed to broad-based declines in BTC, ETH, and altcoins.
How much was liquidated in the crypto market?
Over the past 24 hours, approximately $566 million in long and short positions were liquidated across major cryptocurrencies, with Bitcoin and Ethereum accounting for the largest shares.
Is the Bybit hack confirmed?
Yes. Reports indicate that Bybit suffered a significant security breach involving Ethereum holdings. While full details are still emerging, early analysis points to possible involvement by advanced threat actors.
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Could stolen ETH affect future prices?
If hackers begin selling the stolen Ethereum, it could create additional downward pressure on ETH’s price. However, many exchanges and on-chain monitoring firms are likely tracking these funds closely, which may limit large-scale dumping.
Why did some tokens like ENA and BGB rise?
Tokens like Ethena (ENA) and Bitget Token (BGB) gained due to positive fundamentals and strategic moves, including protocol assurances and new staking programs. In times of crisis, investors often rotate into perceived safer or more active projects.
Should I sell my crypto after this crash?
Market reactions should be guided by personal risk tolerance and investment strategy—not panic. Consider reviewing your portfolio allocation, avoiding excessive leverage, and using downturns as opportunities to assess long-term holdings.
Final Thoughts: Navigating Volatility After Major Exchange Breach
The events of February 22 underscore a persistent truth in crypto: innovation goes hand-in-hand with risk. While decentralized networks continue to mature, centralized points of failure—like exchange wallets—remain vulnerable targets.
Investors should prioritize security best practices: use cold storage where possible, avoid over-leveraging, and stay informed about protocol health and exchange audits.
As markets stabilize, focus will shift toward recovery patterns, potential regulatory responses, and whether confidence can be restored quickly enough to sustain bullish momentum into 2025.
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